Computer Programs and Systems, Inc. Announces Fourth Quarter and Year-End 2008 Results
Posted on January 29, 2009 at 18:30 PM EST
Computer Programs and Systems, Inc. (NASDAQ: CPSI):
Computer Programs and Systems, Inc. (NASDAQ: CPSI), a leading provider of healthcare information solutions, today announced results for the fourth quarter and year ended December 31, 2008.
The Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $0.36 (thirty-six cents) per share, payable on February 26, 2009, to stockholders of record as of the close of business on February 12, 2009.
Total revenues for the fourth quarter ended December 31, 2008, increased 14.0% to $32.0 million, compared with total revenues of $28.1 million for the prior-year period. Net income for the quarter ended December 31, 2008, increased 26.7% to $4.8 million, or $0.45 per diluted share, compared with $3.8 million, or $0.36 per diluted share, for the quarter ended December 31, 2007. Cash provided by operations for the fourth quarter of 2008 was $3.4 million, compared with $6.2 million for the prior-year period.
Commenting on the results, Boyd Douglas, chief executive officer and president of CPSI, stated, “By any measurement, 2008 was a very good year for our company. Although pleased with our success, we recognize that we operate in a challenging economic environment, and, while we look to the future with optimism, we know that this is no time for overconfidence. Our strategy is to stick to what we know best – continue providing exceptional products and services to our clients and work even harder to counter the prevailing winds in our national economy. We have been in business for almost three decades and have proven that we can continue fulfilling and exceeding the expectations of our customers and our shareholders, regardless of national economic cycles.”
Total revenues for the year ended December 31, 2008, increased 8.8% to $119.7 million, compared with total revenues of $110.0 million for the prior-year period. Net income for the year ended December 31, 2008, increased 19.5% to $15.4 million, or $1.43 per diluted share, compared with $12.9 million, or $1.20 per diluted share, for the year ended December 31, 2007. Cash provided from operations for the year ended December 31, 2008, was $15.7 million, compared with $19.1 million for the same period last year.
For the first quarter of 2009, the Company anticipates total revenues of $30.5 million to $32.0 million and net income of approximately $4.2 million to $4.4 million, or $0.39 to $0.41 per diluted share. CPSI’s 12-month backlog as of December 31, 2008, was $100.7 million, consisting of $20.7 million in non-recurring system purchases and $80.0 million in recurring payments for support, Business Management Services, ASP and ISP contracts.
A listen-only simulcast and replay of CPSI’s fourth quarter and year-end 2008 conference call will be available on-line at www.cpsinet.com and www.earnings.com on January 30, 2009, beginning at 9:00 a.m. Eastern Time.
About Computer Programs and Systems, Inc.
CPSI is a leading provider of healthcare information solutions for community hospitals with over 650 client hospitals in 46 states. Founded in 1979, the Company is a single-source vendor providing comprehensive software and hardware products, complemented by complete installation services and extensive support. Its fully integrated, enterprise-wide system automates clinical and financial data management in each of the primary functional areas of a hospital. CPSI’s staff of over 700 technical, healthcare and medical professionals provides system implementation and continuing support services as part of a comprehensive program designed to respond to clients’ information needs in a constantly changing healthcare environment. For more information, visit www.cpsinet.com.
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified generally by the use of forward-looking terminology and words such as “expects,” “anticipates,” “estimates,” “believes,” “predicts,” “intends,” “plans,” “potential,” “may,” “continue,” “should,” “will” and words of comparable meaning. Without limiting the generality of the preceding statement, all statements in this press release relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and future financial results are forward-looking statements. We caution investors that any such forward-looking statements are only predictions and are not guarantees of future performance. Certain risks, uncertainties and other factors may cause actual results to differ materially from those projected in the forward-looking statements. Such factors may include: overall business and economic conditions affecting the healthcare industry; saturation of our target market and hospital consolidations; changes in customer purchasing priorities and demand for information technology systems; competition with companies that have greater financial, technical and marketing resources than we have; failure to develop new technology and products in response to market demands; fluctuations in quarterly financial performance due to, among other factors, timing of customer installations; failure of our products to function properly resulting in claims for medical losses; government regulation of our products and customers, including changes in healthcare policy affecting Medicare reimbursement rates; interruptions in our power supply and/or telecommunications capabilities and other risk factors described from time to time in our public releases and reports filed with the Securities and Exchange Commission, including, but not limited to, our most recent Annual Report on Form 10-K. We also caution investors that the forward-looking information described herein represents our outlook only as of this date, and we undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this press release.
Free cash flow is a non-GAAP financial measure which CPSI defines as net cash provided by operating activities less purchases of property and equipment. The most directly comparable GAAP financial measure is net cash provided by operating activities. The Company believes free cash flow is a useful measure of performance and uses this measure as an indication of the financial resources of the Company and its ability to generate cash.
Darrell G. West
Vice President-Finance and Chief Financial Officer
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